Vocabulaire stock market Flashcards

1
Q

Appreciate

A

consist of evaluating or mesuring the value of a certain object or service

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2
Q

Arbitrage

A

financial strategy that consist of taking advantage of the price difference between different markets for the same financial assets in order to obtain an economic benefit

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3
Q

Asset-backed security

A

Bonds or promissory notes that are backed by financial assets. They are usually made up of accounts receivables

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4
Q

Asset

A

Any resource owned by an individual or entity that has economic value and can be converted into cash or used to generate income.

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5
Q

Bank secrecy act

A

law to combat money laundering and other financial crimes

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6
Q

Banker

A

Person whose job consist on helping their clients to take the best decisions for their company

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7
Q

Bear market

A

Market that has a history of sustained declines over time and towards which investor don’t feel very optimistic regarding an increase

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7
Q

Bear

A

An investor who believes that the market or a specific asset will decline in value, leading to a selling strategy.

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8
Q

Bond

A

Title that represents the right to receive a flow of periodic payments in the future exchange for delivering an amount of money

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9
Q

Broker

A

the person responsible for executing the marketing and sale’s activities of products or services

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10
Q

Building societies

A

financial institution that offers banking and other financial services

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11
Q

Bull

A

An investor who believes that the market or a specific asset will rise in value, leading to a buying strategy.

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12
Q

Bull market

A

A specific type of buoyant market characterized by a sustained period of rising prices. It reflects strong investor confidence and positive economic outlooks.

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13
Q

Buoyant market

A

A financial market where prices are rising or stable, driven by investor confidence and optimism, leading to increased trading activity. It can refer to both rising and stable conditions.

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14
Q

Call (option)

A

at the end of the lease period, the lessee usually has the option to purchase the asset at a nominal price

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15
Q

Capital market

A

is a financial market in which long-term debts are bought and sold

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16
Q

Capitalization rate

A

mesure of profitability used to evaluate the possible rate of return on a income-producing investment property

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17
Q

Clearing

A

payments or benefits that an employee receives in exchange for their work or services

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18
Q

Closing price

A

the last price at which a stock traded during a regular trading session

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19
Q

Collateralized debt obligation

A

is a type of financial product structured and backed by ABS financial assets

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20
Q

Commercial bank

A

institutions that have been authorized by the Federal Government to raise financial resources and grant credits

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21
Q

Compound interest

A

Interest calculated on both the initial principal and the accumulated interest from previous periods.

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22
Q

Cost of debt ratio

A

is a math. quotient that represent the total percentage of debt that a business has in relation to its own resources

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23
Q

Cost of debt

A

monetary cost that a company makes through loans

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24
Cost of equity
cost that a company has to obtain financing through its own resources
25
Credit
An agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.
26
Credit default swap (CDS)
is a financial derivative that allows to cover the risk of non-payment of a financial asset
27
Credit rating agency (CRA)
private entities whose main function is to provide an assesment of the credit risk of a company or financial product through a series of rating
28
Current assets
are instruments that allow to obtan profitability in a period of less than 12 months
29
Current yield
is the annual income generated by an investment, expressed as a percentage of its current market value
30
Deflation
Is a general and continued fall in prices in economy
31
Depreciate
To reduce in value over time, typically referring to assets due to wear, aging, or market conditions.
32
Discount rate
interest rate that is used to calculate the value of a series of income that will be received later
33
Diversification
consist on dividing the available resources to asign each part to differents assets
34
Dividends
they are the part of profits that a company has generated, They are distributed among its partners or shareholders
35
Dividend per share (DPS)
is an essential financial indicator that mesures the amount of money a company pays its shareholders for each share in circulation.
36
Dull market
is characterized by a prolonged period of low volume and small price changes
37
Earnings per share (EPS)
is a financial index that is used to mesure the profitability of a company
38
Enterprise value
A measure of a company's total value, calculated as market capitalization plus debt, minus cash and cash equivalents.
39
Equity (=stock)
A share in the ownership of a company, representing a claim on part of its assets and earnings.
40
Exchange rate
indicates how many units of one currency are needed to acquire one unit of another currency
41
Financial analyst
they study the company's financial statements and the economic context to guide it in making financial or investments decisions
42
Financial circle
the period of time it takes a company to carry out all of its operations.
43
Foreign currency / exchange
currency that are different from the ones of the country of origin
44
Financial markets
a place, physical ir virtual, where financial assets are bought and sold
45
Gamble on the Stock Exchange
the process by which capital is allocated to the purchase of shares of listed companies or other financial instruments with the objective of obtaining a return on them
45
Foreign-exchange broker
intermediary between the client and the market
46
Forward (contract)
made for a specific task and ends when the work is completed
47
Future contract
is a legal agreement between two parties to trade an asset at a predefine price, on a specific date in the future
48
Guaranteed Investment Certificates (GIC)
Is a type of low-risk investment with a guaranteed interest rate
49
Hedge
Strategy of reducing the risk associated with an investment by taking steps to protect against potential losses
50
Hedge fund
Investment vehicles managed by financial expertes who seek to obtain profits for their investors while managing and protecting their assets
51
Inflation
general increase in the price of goods and services in an economy over a period of time
51
International Monetary Fund (IMF)
Is an organization made up of 184 countries, which works to promote global monetary cooperation
51
Internal rate of return (IRR)
Is a capital budgeting measure that companies use to determine the profitability of a potential investment or a project based on cash flow predictions
52
Investment fund
Funds that invest in the money market, in which cash and other assets are traded
53
Limit order
An order to buy or sell a security at a specific price or better
53
Liquidity ratio
A metric used to determine a company's ability to cover its short-term obligations
53
Legal tender
official form of payment that may be accepted for a public or private debt or fulfill a financial obligation in accordance with the laws of the area
54
Load
A fee charged when buying or selling mutual funds
55
Loan
A sum of money borrowed with the expectation of repayment, typically with interests
56
Market capitalisation
The total market value of a company's outstading shares
57
Market risk premium
The additional return expected from an investment in a risky asset over a risk-free rate
58
Money laundering
The process of concealing the origins of illegally obtained money
59
Mutual fund company
A firm that pools funds from investors to invest in a diversified portfolio of securities
60
Net present value (NPV)
The difference between the present value of cash inflows and outflows over a period of time
61
No load mutual fund
A mutual fund that does not charge a sales fee or comission
62
Opening price
The first price at which a security is traded when the market opens
63
Over-the-counter (OTC) off exchange trading
Trading of securities directly between parties, outside formal exchanges
64
P/E ratio (Price to earnigs)
A ratio used to value a company, calculated by dividing the stock price by the earnings per share
65
Parity
The condition where two assets or currencues have equal value
66
Payout ratio (DPS/EPS)
The percentage of earnings paid out as dividends to shareholders
67
Put (option)
A financial contract that gives the holder the right, but not the obligation, to sell an asset at a specified price within a certain period
68
Quotation
The most recent price at which a security or commodity was traded or is being offered for sale
69
Reach maturity
The point when a financial instrument or loan reaches its due date for repayment
70
Recover
To regain value or profitability after a decline
71
Restricted funds
Funds that can only be used for specific purposes, as defined by a donor or regulator
72
Return on investment (ROI)
A mesure of profitability calculated as the return on an investment relative to its cost
73
Risk -free rate
The return on an investment with no risk of financial loss, often represented by government bonds
74
Sag
A decline or weakening in economic conditions or prices
75
Saving bank
A financial institution that receives savings deposits and pays interest
76
Securities
Tradable financial assets, such as stock, bonds or derivatives
77
Securitise / Securitize
The process of pooling various financial assets and repackaging them into security for investors
78
Setback
A temporary decline or delay in progress, often referring to financial or economic performance.
79
Share, stock (US)
A unit of ownership in a company, representing a claim on part of its assets and earnings.
80
Short sales
The sale of a security not owned by the seller, with the intent of buying it back at a lower price to profit from a price decline.
81
Sound investment
An investment considered safe and reliable, with steady returns and minimal risk.
82
Speculator
An investor who takes high risks in the hopes of achieving significant financial gains, often through short-term market movements.
83
Stockbroker
A professional who buys and sells securities on behalf of clients, typically earning a commission for each transaction.
84
Swap
A financial contract where two parties exchange cash flows or liabilities, often to manage risk or achieve better terms.
85
Tracker
A financial instrument or fund that follows the performance of a specific index or asset.
86
Treasury bill
A short-term government debt security issued at a discount and maturing within one year.
87
Volatility
The degree of variation in the price of a financial asset, indicating how much and how quickly prices can change.
88
Yield
The earnings generated from an investment, typically expressed as a percentage of its cost or current market value.
89
Warrant
A financial instrument giving the holder the right, but not the obligation, to buy a company’s stock at a specific price before a set expiration date.